Some less actively traded names seeing bullish order flow: Micromet (MITI), Public Services Enterprises (PEG), Jaguar Mining (JAG) Bearish order flow: GMX Resources (GMXR), USG, Netsuite (N) Post Earnings: Halliburton (HAL), Private Bancorp (PVTB), Eaton (ETN), Quest Diagnostics (DGX), Ashland (ASH) Pre-Earnings: Texas Instruments (TXN), VM Ware (VMW), Atheros Communications (ATHR), SL Green Realty (SLG) Ex-Div: Vornado Realty (VNO), Clorox (CLX)

Dow component Dupont (DD) is up 37 cents to $32.87 and options are seeing some action ahead of earnings, due tomorrow before the bell. 9660 calls and 6020 puts traded so far. The top trade is a block of 3500 Feb 34 calls, bought at 45 cents per contract and tied to 133K shares at $32.80. Implied volatility is up about 1 percent, to 29, as investors brace for possible volatility around tomorrow’s earnings release.

*Scanning all single-stocks subject to 2500 contracts minimum call or put volume

Bank of America (BAC) is up a nickel to $14.95 and the BAC Feb 14 – 17 risk-reversal trades at 17 cents, 10000X. The strategist bought puts, sold calls against a position in shares at $15. So, basically, this is a “collar”. Recall that, in a collar, the strategist is buying shares and puts, while also selling calls. The premium for the calls (credit) finances the puts (debit) — which in turn provide downside protection. The upside is limited due to the short calls. In this case, the strategist pays $15.17 per share for the collar total (excluding commissions) and has downside protection at $14 (-7.7 percent). The upside is limited to $17 (12.1 percent). If the stock is trading above that level at the February expiration, the calls will be assigned and the strategist will sell the shares at $17.

*Scanning all single-stocks subject to 2500 contracts minimum call or put volume

Big Prints in Union Pacific (UNP) after an investor sold 15.4K May 67.5 puts at $6.20 and also bought the following: 10.4K May 62 puts $3.55, 19k May 60 puts at $2.60, 15.4K May 65 puts $4.80. Open interest is sufficient to cover in all four contracts and some or all of the activity might be closing (positions accumulated Jan 13, Jan 14 and Jan 21.)

After popping some 45% last week the VIX Index is off 7% to 23.50 this morning and early suggests one player thinks last weeks spike in volatility was overdone and will continue to retreat. Notable trade was a bearish a risk reversal of selling 1,500 of the February $22.50 calls and buying 1,500 of the $18 puts for a $2.80 credit. This position will not only collect that credit if the VIX is below 22.50 in three weeks, remember the VIX futures and options expire three days prior to regular equity option expiration, but must revert to the cash price.

Intel (INTC) shares added 25 cents to $20.16 and INTC calls are seeing early iinterest after the latest issue of Barron’s mentioned the company positively. The chipmaker trades at modest valuation while business is rebounding, according to Barron’s. The top trade of the day is 6563 Mar 22 calls at the asking price, 27 cents per contract. 10K now traded.